There are stand-out ‘success’ and ‘failure’ characteristics of these people and we will discuss these in another article at some point, and, there’s no wonder some have reached their goals in the online world, and some haven’t.
Now, you’re probably thinking, I’m hardworking, I consistently post every day, I never take any time off and I offer amazing services so why isn’t it working, why am I not making a good income?
We look today at some of the reasons business owners fail. It is sometimes difficult to evaluate yourself and your business and identify weaknesses as we feel we are doing things right, when in fact you could be doing it all wrong. You could be emulating other successful coaches and businesses but, you may not be as authentic, and this will be portrayed to your audience.
Six Reasons Why Entrepreneurs Fail
1. Lack of Marketing
We have had many business consultancy sessions in which clients have had websites built and they were expecting a flood of customers to buy their products and services. What we find, most commonly, is that they have poor marketing skills or don’t put themselves ‘out there’.
Business, will not land in your lap!
You can’t expect people to find you, you need to be offering value, making connections, building an engaging community, asking for referrals, posting good quality content and all on a consistent basis.
2. Too Much Marketing
It may sound like the complete opposite of the last reason but there are people who place too much emphasis on sales and marketing. They waste so much time and money in trying to attract new clients.
This means that their attention is taken away from giving their existing clients the best service that they deserve and paid for.
Reputation and word of mouth referrals can lead to more sales, and this is free and organic. Giving a below expectations delivery could jeopardise future growth rates.
3. Lack of Focus
By this, we mean, trying to do too many things for too many people and not enough focus on strength areas.
We have been guilty of this ourselves. We have so much knowledge and experience that we can offer consultancy and multiple done-for-you services in multiple industries and can offer this to most clients. But this can hinder.
We understand the importance of focussing on strengths to give more value and this, in turn, strengthens the connection between you and the client. When you can have a new level of understanding with your client, it leads to better results, gives you more confidence, sets you up as an industry expert and results in more clarity.
4. Not Knowing Your Clients
Similar to the last statement, it is a major flaw in not knowing your clients. Some businesses have a one size fits all system, when in fact, everyone has different needs, and each is unique.
Not being able to be flexible and adaptable to change for the benefit of the client can bring dissatisfaction.
Conduct regular FAQs, and feedback and adapt your services to meet the needs of your audience so that
a) you are constantly evolving and bringing fresh material and
b) you are being authentic and sticking to your own lane and paving a route to success.
5. Undervaluing Your Work
Another huge reason why businesses fail and one that we had to confront ourselves.
Are you charging the right price for your products or services?
That’s too expensive, my clients won’t pay that, I won’t get any work – were all statements we made.
Now obviously we’re not saying double your prices overnight (although there have been times we have done this and may be necessary if you are vastly undercharging) What we are saying, is, take a look at what you would ideally like to earn on a daily basis.
If your ideal income is, say £300 per day and you are currently charging £20 per hour for your time/products/service then you will either have to work 15-hour days OR you are under-charging and will have to increase prices!
We have reached burnout by having too much business because we were so cheap. What we have realised is that we were providing content and material and services that were worth a lot more than we were charging.
What happened when we started to increase our prices is that we
1) lost a few clients but some of those clients started to do it themselves and the quality was a lot poorer
2) we gained respect from existing and new clients as we deliver exceptional work
3) we grew our business more quickly and had more of our ideal clients and, most importantly
4) we had more work/life balance.
6. Time Spent on Wrong Areas of Business
More so, time being spent on non-income producing activities, – are you doing tasks that may seem important but are also taking your focus away from the sharp end – the client?
Any jobs you can afford to pass on to a virtual assistant or another specialist will mean you have time to do other important and relevant tasks which will give you more income.
Outsourcing to someone such as ourselves at The Digital Business Agency, where such tasks can either be fulfilled as ‘done for you’ services or using our Template Club can mean that you are freeing up your time to concentrate on getting to know your client.
Not only are you saving time but you are going to be receiving quality work; better social media posts, amazing websites, converting sales funnels etc.
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